2. Shadow pricing was first put forward by the Dutch economist Jan Dingbergen in the late 1930s. It was calculated by using the mathematical method of linear programming and reflected the optimal allocation of social resources. It is a reasonable evaluation of "labor, capital and commodities imported for scarce resources". Samuelson further developed that the shadow price is expressed in mathematical form, which reflects the price when resources are used optimally; The United Nations defines the shadow price as "the opportunity cost of an input (such as capital, labor and foreign exchange) or the loss caused by the reduction of its supply by one unit to the whole economy".
3. Shadow pricing in the fund refers to the fund manager's re-valuation of the valuation object held by the fund by using the market interest rate and transaction price on each valuation date, that is, "shadow pricing". When the deviation between the fund's net asset value and the shadow pricing reaches or exceeds 0.5% of the fund's net asset value, or the fund manager thinks that other major deviations have occurred, the fund manager can make adjustments after consultation with the fund custodian to make the fund's net asset value reflect the fund's asset value more fairly and ensure that the fund's net asset value calculated by the amortized cost method will not cause substantial damage to the fund holders.
4. The function of shadow pricing is to avoid significant deviation between the net asset value of the fund calculated by amortized cost method and the net asset value of the fund calculated by market interest rate and transaction market price, which will dilute and be unfair to the interests of fund holders.